• TBA is a term taken from the sale of mortgage-backed securities, where the details were known later.

  • TBA is used to facilitate transactions in the MBS market and provide liquidity, allowing mortgage lenders to hedge their lending channels.
  • A TBA deal does not include all the details, so it is best left to professionals who understand the nuances of TBA deals.
  • Due to their nature, TBAs can sometimes carry significant risk.
  • TBA is sometimes used interchangeably with TBD (“to be determined”).